Options & Derivatives
Options and derivatives are complex financial instruments used in various trading and investment strategies. An option gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time frame. Derivatives, including futures, forwards, swaps, and options, derive their value from the performance of an underlying entity like an asset, index, or interest rate. These instruments are used for hedging against price fluctuations in an asset, thereby reducing risk, or for speculative purposes to profit from anticipated price movements. They play a crucial role in financial markets by providing additional liquidity, enabling price discovery, and offering mechanisms for risk management.
Theta Explained for Beginners: Mastering Option Time Decay
Join Ryan O’Connell, CFA, FRM, as he explains Theta in options trading, guiding beginners through mastering option time decay in the comprehensive video, “Theta Explained for Beginners: Mastering Option Time Decay.” Discover the essentials of option Theta, why it’s almost always negative, and its impact on option pricing through detailed examples. Dive deep into the intrinsic and extrinsic values of options, understanding how they fluctuate over time for in-the-money (ITM) and out-of-the-money (OTM) calls. Whether you’re a novice trader or looking to brush up on your options knowledge, this video provides invaluable insights into how Theta affects different strike prices and moneyness, equipping you with the expertise to make more informed trading decisions. Plus, gain a broader understanding of option Greeks and how they play a crucial role in your trading strategy.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
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Chapters:
0:00 – Intro to Option Theta Explained
0:32 – Definition of Option Theta
1:05 – Theta Is Almost Always Negative
1:31 – Example of Theta Price Change Impact
2:18 – Intrinsic Value of Options
3:56 – Extrinsic Value of Options
4:36 – Intrinsic & Extrinsic Value Over Time – ITM Call
6:48 – Intrinsic & Extrinsic Value Over Time – OTM Call
8:29 – Theta at Different Strike Prices & Moneyness
10:07 – Finance Tutoring at RyanOConnellFinance.com
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Gamma Explained: Shaping Option Delta
Join Ryan O’Connell, CFA, FRM, as he demystifies the complex world of options trading with “Gamma Explained: Shaping Option Delta.” This comprehensive video breaks down the crucial roles of Gamma and Delta in options pricing, offering clear insights into how these Greeks impact option strategies. From the basics of Delta and Gamma to their intricate relationship and effects on in-the-money versus out-of-the-money options, Ryan provides an in-depth analysis perfect for both novice and experienced traders. Discover how Gamma shapes the Delta of your options and ultimately your trading outcomes in this essential guide to the Option Greeks.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Defining the Option Greeks
0:23 – Delta Definition
0:45 – Option Price Change Based on Delta
1:26 – Gamma Definition
1:48 – Delta Change Based on Gamma
3:18 – Formula For How Gamma Changes Delta
4:02 – In-the-Money Vs Out-of-the-Money Options
4:54 – Delta At Different Levels of Moneyness
8:51 – Gamma At Different Levels of Moneyness
9:59 – Delta & Gamma Over the Life of a Stock
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Delta Explained: An Options Trading Beginner’s Guide
Dive into the world of options trading with “Delta Explained: An Options Trading Beginner’s Guide,” hosted by Ryan O’Connell, CFA, FRM. This comprehensive video covers everything from the basics of delta and the Greeks to how delta influences call and put option prices, changes with stock price movements, and varies with time to expiration. Whether you’re new to options trading or looking to deepen your understanding of delta’s impact on your trading strategy, this guide offers valuable insights into making informed decisions in the options market. Join Ryan as he breaks down complex concepts into easy-to-understand explanations, equipping you with the knowledge to navigate the options trading landscape confidently.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
Chapters:
0:00 – Introduction to Delta & The Greeks
0:38 – Call Option Price Changes Based on Delta
1:19 – Put Option Price Changes Based on Delta
2:18 – Implied Option Price Changes Over Time
3:47 – How Delta Changes With Stock Price
5:59 – How Delta Changes With Time to Expiration
7:53 – Call Deltas At Different Strike Prices
10:01 – Put Deltas At Different Strike Prices
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Protective Puts Explained | Option Strategy Basics
In this comprehensive video titled “Protective Puts Explained | Option Strategy Basics” by Ryan O’Connell, CFA, FRM, viewers will gain an in-depth understanding of the protective put strategy, a pivotal concept in options trading. Starting with a clear definition of protective puts, the video seamlessly transitions into explaining the crucial variables in stock options, all demonstrated through expertly crafted Excel simulations. Viewers will explore the payoff scenarios for both a single long stock share and a long put, culminating in a detailed breakdown of the protective put strategy. Ideal for both beginners and seasoned traders, this tutorial is a must-watch for anyone looking to deepen their knowledge of options trading strategies.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/protective-puts-excel-model/
Chapters
0:00 – Protective Put Definition
0:30 – Stock Option Variables
1:36 – Payoff for One Stock Share (Long)
2:38 – Payoff for One Long Put
4:28 – Payoff for Protected Put
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
The Greeks Explained: Options Analysis in Excel
In “The Greeks Explained: Options Analysis in Excel,” Ryan O’Connell, CFA, FRM, provides a thorough tutorial on understanding the critical aspects of option Greeks using Excel. Starting with the fundamental inputs of the Black Scholes Model, this video offers detailed walkthroughs of calculations for d1, Delta, Gamma, d2, Theta, Vega, and Rho, along with their practical interpretations. Perfect for both beginners and advanced traders, the video makes complex concepts accessible, enhancing your options trading strategies with Excel’s analytical power. Don’t miss this chance to elevate your trading skills with expert insights into the Greeks in options trading!
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
💾 *Purchase Excel File Here:* https://ryanoconnellfinance.com/product/option-greeks-calculator-in-excel/
Chapters:
0:00 – Intro to “The Greeks Explained”
0:18 – Inputs to the Black Scholes Model
2:45 – d1: Calculation
3:56 – Delta: Calculation & Interpretation
12:03 – Gamma: Calculation & Interpretation
14:33 – d2: Calculation
15:00 – Theta: Calculation & Interpretation
18:20 – Vega: Calculation & Interpretation
20:44 – Rho: Calculation & Interpretation
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Futures Pricing and Valuation Simplified
Discover the simplicity of futures pricing and valuation with Ryan O’Connell, CFA, FRM’s easy-to-follow video, ‘Futures Pricing and Valuation Simplified’, using Excel for practical demonstrations. Dive into key concepts starting from the basics of futures prices, understanding Contango, to calculating the value of a futures contract, with real-time data from the CME Group. Perfect for beginners and those looking to refresh their knowledge, this video guides you through every step, marked with clear chapters, ensuring a comprehensive understanding of futures contract pricing.
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
📈 *See Why I Recommend This Broker For Futures:* https://ryano.finance/ibkr-futures
💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/futures-contract-valuation-spreadsheet/
Chapters
0:00 – Futures Prices Explained
1:05 – How to Get Futures Prices from CME Group
1:45 – Contango Explained
3:10 – Futures Prices Changing Overtime
5:47 – Calculate the Value of a Futures Contract
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Covered Calls Explained | Option Strategy Basics
Dive into the world of options trading with “Covered Calls Explained | Option Strategy Basics,” a comprehensive tutorial by Ryan O’Connell, CFA, FRM. This video breaks down the concept of covered calls, illustrating payoffs and strategies using Excel for clear and practical understanding. Whether you’re a beginner or looking to refine your skills, this guide is an invaluable resource for anyone interested in mastering covered calls in the stock market.
🎓 *This Video Is Part of My Full Options Trading Course:*
Go deeper with step-by-step lessons, paper trading practice, and downloadable resources.
👉 https://ryano.finance/options-course
📈 *See Why I Recommend This Broker For Options:* https://ryano.finance/ibkr-options
📚 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
✅ https://ryano.finance/cfa
💾 *Download Free Excel File:* https://ryanoconnellfinance.com/product/covered-call-excel-template/
Chapters:
0:00 – What is a Covered Call
0:32 – Define the Variables/Inputs
1:37 – Payoff on One Share of Stock
3:02 – Payoff on One Short Call Option
5:40 – Payoff on Covered Call
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
SOFR Futures Explained: 3-Month & 1-Month Pricing in Excel
Join Ryan O’Connell, CFA, FRM, as he demystifies SOFR Futures Contracts in this comprehensive tutorial. Learn how to effortlessly price both 3-Month and 1-Month SOFR Futures using Excel, perfect for finance professionals and students alike. Dive into the world of futures contracts with expert insights and practical, easy-to-follow Excel demonstrations
📈 *See Why I Recommend This Broker For SOFR Futures:* https://ryano.finance/ibkr-futures
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
💾 *Download Free Excel File Here:* https://ryanoconnellfinance.com/product/sofr-futures-excel-toolkit/
Chapters:
0:00 – SOFR Futures Contract Definition
3:14 – Pricing a 3-Month SOFR Futures Contract
8:29 – Pricing a 1-Month SOFR Futures Contract
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Forward Contracts Explained: How-To Value Them
Join Ryan O’Connell, CFA, FRM, as he demystifies forward contracts in this insightful video. Dive into the mechanics of forward contracts, understand their payoff at expiration, and master the techniques of valuing them with ease. Ideal for finance students and professionals, this video is a must-watch for anyone looking to deepen their understanding of derivatives trading
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
Chapters
0:00 – What is a Forward Contract?
1:59 – Payoff at Expiration of Forward Contract
5:24 – How to Value a Forward Contract
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
Forward Rate Agreements Explained | How to Calculate an FRAs Value
In this video, Ryan O’Connell, CFA, FRM, demystifies Forward Rate Agreements (FRAs). He explains what they are, how they work, and how to calculate their value. Learn how to use FRAs to hedge interest rate risk and unlock new investment opportunities.
🎓 *Get 25% Off CFA Courses (Featuring My Videos!) — Use code RYAN25 here:*
👉 https://ryano.finance/cfa
Chapters:
0:00 – Forward Rate Agreements Explained
4:35 – How to Calculate an FRAs Value
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
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